The slow growth of the European Union has been attributed to a series of long-lasting shocks: the information technology revolution, German reunification, opening up to the new market economics of central and Eastern Europe, and globalisation. The EU economic system must be reformed to ensure higher growth. This process should be based on three basic principles: giving priority to growth, reshaping of policy instruments and governance methods to fit the objectives, and adapting to a changing environment. New policy designs are described.
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